Asked by Alexandria Russell on May 08, 2024
Verified
Refer to Figure 16.2. The ________ imposed as a result of producing the market (unregulated) level of cars is $350.
A) marginal social cost
B) total damage
C) marginal private cost
D) marginal social benefit
Total Damage
The cumulative harm or loss resulting from an event or series of events, often used in the contexts of legal claims or environmental impacts.
Market Level
Refers to the overall condition or status of a market, including factors like total supply, demand, price levels, and market participants.
- Acquire knowledge on the notion of effective production rates amidst externalities.
- Identify the differences between private, social costs, and benefits in scenarios with externalities.
Verified Answer
QA
Quentin AbramoMay 10, 2024
Final Answer :
B
Explanation :
The correct answer is "total damage" because the cost imposed as a result of producing the market (unregulated) level of cars refers to the external costs or damages not accounted for in the market price, which is typically referred to as total damage in environmental economics.
Learning Objectives
- Acquire knowledge on the notion of effective production rates amidst externalities.
- Identify the differences between private, social costs, and benefits in scenarios with externalities.